French and German authorities closed in on the financial district of La Defense in Paris on Tuesday, raiding at least five major banks suspected of committing tax fraud and money laundering.
Over 150 French investigators and at least six German prosecutors conducted raids at Societe Generale, BNP Paribas, Natixis, HSBC, and Exane after preliminary investigations stemming from December 2021 suspect the banks were part of an aggravated tax fraud and money laundering scheme linked to dividend payments.
A statement from the financial prosecutor’s office (PNF) translated by news agency France 24 said the allegations surround “Cum Cum’ deals whereby foreign shareholders of a French-listed company relocate shares to a French bank whilst dividend payments are distributed, ultimately foregoing capital gains tax payments.
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Back in 2018, several European-based news organizations published the results of an investigation called the “CumEx-Files,” alleging the German and French fraud scheme totalled $151 billion over a span of two decades.
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